| Delaware |
94-3226488 | |
| (State or other jurisdiction of |
(I.R.S. Employer | |
| incorporation or organization) |
Identification No.) |
| 777 Mariners Island Blvd., San Mateo, CA |
94404 | |
| (Address of principal executive offices) |
(Zip Code) |
| Class
|
Shares outstanding at July 31,
2002 | |
| Common Stock, $.001 par value |
28,490,289 |
| Page | ||
| PART IFINANCIAL INFORMATION |
||
| 3 | ||
| 14 | ||
| 32 | ||
| PART IIOTHER INFORMATION |
||
| 33 | ||
| 33 | ||
| 33 | ||
| 33 | ||
| 33 | ||
| 33 | ||
| 34 |
| Page | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 7 |
| June 30, 2002 |
September 30, 2001 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
51,130 |
|
$ |
53,130 |
| ||
| Short-term investments |
|
192,809 |
|
|
198,566 |
| ||
| |
|
|
|
|
| |||
| Total cash, cash equivalents, and short-term investments |
|
243,939 |
|
|
251,696 |
| ||
| Accounts receivable, less allowance for doubtful accounts of $1,465 and $1,041 as of June 30, 2002 and September 30, 2001, respectively |
|
5,348 |
|
|
7,862 |
| ||
| Prepaid and other current assets |
|
3,103 |
|
|
4,649 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
252,390 |
|
|
264,207 |
| ||
| Restricted cash |
|
85,000 |
|
|
85,000 |
| ||
| Property and equipment, net |
|
14,248 |
|
|
17,208 |
| ||
| Goodwill, net |
|
|
|
|
3,025 |
| ||
| Other intangible assets, net |
|
3,215 |
|
|
1,472 |
| ||
| Other assets |
|
385 |
|
|
1,752 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
355,238 |
|
$ |
372,664 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Notes payable and capital lease obligation |
|
37 |
|
|
830 |
| ||
| Accounts payable |
|
757 |
|
|
2,385 |
| ||
| Accrued expenses |
|
8,740 |
|
|
10,626 |
| ||
| Accrued excess facility costs |
|
8,854 |
|
|
10,303 |
| ||
| Deferred revenue |
|
5,658 |
|
|
5,401 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
24,046 |
|
|
29,545 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
24,046 |
|
|
29,545 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Common stock |
|
28 |
|
|
28 |
| ||
| Treasury stock |
|
(1,600 |
) |
|
(1,086 |
) | ||
| Additional paid-in capital |
|
413,971 |
|
|
413,966 |
| ||
| Deferred compensation |
|
(197 |
) |
|
(452 |
) | ||
| Accumulated deficit |
|
(83,457 |
) |
|
(71,804 |
) | ||
| Accumulated other comprehensive income |
|
2,447 |
|
|
2,467 |
| ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
331,192 |
|
|
343,119 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
355,238 |
|
$ |
372,664 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| June 30, |
June 30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenue: |
||||||||||||||||
| Subscription services |
$ |
8,516 |
|
$ |
10,376 |
|
$ |
25,869 |
|
$ |
34,484 |
| ||||
| Consulting and support services |
|
958 |
|
|
693 |
|
|
2,403 |
|
|
1,630 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
9,474 |
|
|
11,069 |
|
|
28,272 |
|
|
36,114 |
| ||||
| Operating Expenses: |
||||||||||||||||
| Costs of subscription services |
|
2,721 |
|
|
3,375 |
|
|
8,970 |
|
|
9,629 |
| ||||
| Costs of consulting and support services |
|
742 |
|
|
739 |
|
|
2,631 |
|
|
2,223 |
| ||||
| Research and development |
|
2,140 |
|
|
1,575 |
|
|
6,420 |
|
|
5,400 |
| ||||
| Sales and marketing |
|
4,709 |
|
|
4,992 |
|
|
14,434 |
|
|
16,578 |
| ||||
| Operations |
|
1,909 |
|
|
1,832 |
|
|
6,036 |
|
|
5,539 |
| ||||
| General and administrative |
|
2,071 |
|
|
1,776 |
|
|
6,133 |
|
|
5,265 |
| ||||
| Restructuring costs |
|
|
|
|
271 |
|
|
|
|
|
271 |
| ||||
| Acquisition-related charges, impairment and amortization of goodwill and intangible assets, and stock-based compensation |
|
597 |
|
|
34,676 |
|
|
1,203 |
|
|
47,906 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
14,889 |
|
|
49,236 |
|
|
45,827 |
|
|
92,811 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(5,415 |
) |
|
(38,167 |
) |
|
(17,555 |
) |
|
(56,697 |
) | ||||
| Interest income, net |
|
2,916 |
|
|
3,869 |
|
|
9,064 |
|
|
14,578 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before provision for income taxes
and the cumulative effect of a change in accounting principle |
|
(2,499 |
) |
|
(34,298 |
) |
|
(8,491 |
) |
|
(42,119 |
) | ||||
| Provision for income taxes |
|
|
|
|
150 |
|
|
|
|
|
450 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss before cumulative effect of a change in accounting principle |
|
(2,499 |
) |
|
(34,448 |
) |
|
(8,491 |
) |
|
(42,569 |
) | ||||
| Cumulative effect of a change in accounting principle |
|
|
|
|
|
|
|
(3,160 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(2,499 |
) |
$ |
(34,448 |
) |
$ |
(11,651 |
) |
$ |
(42,569 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss per share: |
||||||||||||||||
| Net loss per share before the cumulative effect of a change in accounting principle |
|
(0.09 |
) |
|
(1.24 |
) |
|
(0.30 |
) |
|
(1.54 |
) | ||||
| Cumulative effect per share of a change in Accounting principle |
|
|
|
|
|
|
|
(0.12 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic and diluted net loss per share |
$ |
(0.09 |
) |
$ |
(1.24 |
) |
$ |
(0.42 |
) |
$ |
(1.54 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Shares used in computing basic and diluted net loss per share: |
|
27,999 |
|
|
27,784 |
|
|
27,928 |
|
|
27,663 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Nine months ended June 30, |
||||||||
| 2002 |
2001 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ |
(11,651 |
) |
$ |
(42,569 |
) | ||
| Adjustments to reconcile net loss to net cash from operating activities: |
||||||||
| Depreciation and amortization |
|
6,031 |
|
|
4,167 |
| ||
| Amortization of goodwill and other intangible assets |
|
748 |
|
|
12,075 |
| ||
| Impairment of goodwill and intangible assets |
|
|
|
|
30,493 |
| ||
| Amortization of deferred compensation |
|
255 |
|
|
5,091 |
| ||